December 3, 2023

Traders work on the trading floor of the New York Stock Exchange.

Brendan McDermid | Reuters

Fate of sick lender after tense days first republic Finally made up my mind, senior banking analyst Christopher McGraty Expect some peace.

Earlier Tuesday, 24 hours after U.S. regulators seized First Republic and selected JPMorgan To take over most of its assets, McGraty traveled to Manhattan to visit a client. Minutes into regular trading, however, shares of regional banks he covers for KBW began to tumble.

“I was like, ‘Hey, this is a good day to catch up, this seems to be a day of order,'” McGraty said in a phone interview. “I went back to my desk and had 40 emails and 10 voicemails and my screen was all red.”

The sharp sell-off in regional bank stocks sparked by the collapse of Silicon Valley Bank in March was repeated Tuesday, catching Wall Street analysts and investors off guard. An orderly settlement of the First Republic by the largest U.S. bank should have quelled concerns about the state of the U.S. banking system, not reignited them.

A sharp decline– west Pacific Shares plunged 28% to record lows on Tuesday, while Western Union 15% lost – In the absence of new news, banking experts are starting to wonder why this happened.

Concerns about uninsured deposits, concerns about commercial real estate and upcoming regulation have all been cited as possible triggers.

Others pointed to pressure from short sellers.That’s it Peter OrsagerFinancial Advisor CEO Lazard A person conducting rescue efforts on behalf of the First Republic told CNBC’s Sara Eisen on Tuesday.

“People are looking for answers, and no one has a good answer,” said McGraty, head of research at KBW Bank of America, who has been researching the industry for nearly 20 years.

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